I am wondering if any of you would share the numbers YOU use for estimating repairs, vacancy, capex and PM? I have used the BP calculators and things I have learned in the podcasts to come up with my own deal analysis spreadsheet. This would be for an initial analysis of the property before really viewing it or gathering house specific data.
I am thinking that these percentages may be off (hoping they are high...). Would love to hear what you use to estimate variable costs in your own deals.
Percentage of rent:
Repairs: 15% (Targeting an area with older homes at this time)
PM: 12% (I will be doing my own PM but want to build this in so I have the option in the future)
The general rule of thumb is 50% for all of that. Sometimes vacancy will be higher, sometimes maintenace will be higher. As @Justin R. pointed out, though, it really depends on your area and the type of property. If you have newer properties your maintenance and capex could be lower, at least initially. It you have longer staying tenants then your vacancies will be lower, etc. etc. Your estimates are just above that 50% mark so if you can find that deal you should be fine. Unless it is a 100 year old property where the tenants turnover every quarter of course. You get the picture.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
You must be a BiggerPockets member to post on the forums
Join the world's largest, most open Real Estate Investing Community online, 100% free forever!